« More reasons that the price of oil will stay low for a while | Main | What determines Saudi oil strategy? »

January 09, 2015


Feed You can follow this conversation by subscribing to the comment feed for this post.

You have a dangling 'And' at the end of the 3rd to the last paragraph.

Wait, why is cheap domestic oil not in the national interest of the United States? I can see how it would not be in the shareholders' interest, but from a consumer point of view, cheap domestic oil would seem to be of interest...

Sure, from a consumer interest agreed! Until you count the externalities from burning gasoline. Then, not so much.

Since oil companies engaged in domestic production spend most of their revenue, there's no Keynesian leakage either.

That said, there's lots of room for disagreement on the first point and the second may not be true forever.

Carbon emissions, JH. Carbon emissions.

Global warming is NOT in the national interests.

What will said is most of what I meant by "externalities."

In fact, now that I've looked up the numbers, transportation makes up 28% of U.S. greenhouse gas emissions; American transportation makes up 4% of global emissions. I've been so focused on coal-burning for the last few years that I forgot the impact of transportation.

Given that more and more of the rents from high oil prices stay at home in the hands of companies that will spend them, II don't think that I should have written that there's really "lots of room for disagreement."

Thanks guys! Gotcha!

The comments to this entry are closed.